Provider payment incentives - Base payment, financial risk & empirical research

4 important questions on Provider payment incentives - Base payment, financial risk & empirical research

Four characteristics of pay-for-performance:

  1. Optional add-on
  2. Directly related to measured performance
  3. Typically small fraction of revenues
  4. Many design options

What kind of payment incentives are plagued by selection bias?

Conservative practice styles vs. Agressive style.
Conservatives prefer to be salaried and the more agressive style prefers to indepedent and be paid by FFS.

What does Gosden et al say about payment methods?

  • The method of payment influence physician behaviour
  • FFS physicians do more than capitated or salaried physicians
  • Few methodologically sound studies available
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What do Gruber and Owings say about a negative income shock and do they exploit their agency relationship?

Decline in fertility led obs/gyns to substitute normal childbirth for more highly paid caesarean delivery

The question on the page originate from the summary of the following study material:

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